C2
common area assessments
Levies against individual unit owners in a condominium or planned unit development (PUD) project for
additional capital to defray homeowners' association costs and expenses and to repair, replace, maintain,
improve or operate the common areas of the project.
common areas
Those portions of a building, land and amenities owned (or managed) by a planned unit development
(PUD) or condominium project's homeowners' association (or a cooperative project's cooperative
corporation) that are used by all of the unit owners, who share in the common expenses of their operation
and maintenance. Common areas include swimming pools, tennis courts and other recreational facilities,
as well as common corridors of buildings, parking areas, means of ingress and egress, etc.
common law
An unwritten body of law based on general custom in England and used to an extent in the United States.
Community Land Trust Mortgage Option
An alternative financing option that enables low- and moderate-income home buyers to purchase housing
that has been improved by a nonprofit Community Land Trust and to lease the land on which the property
stands.
community property
In some western and southwestern states, a form of ownership under which property acquired during a
marriage is presumed to be owned jointly unless acquired as separate property of either spouse.
Community Seconds®
An alternative financing option for low- and moderate-income households under which an investor
purchases a first mortgage that has a subsidized second mortgage behind it. The second mortgage may
be issued by a state, county or local housing agency, foundation, or nonprofit organization. Payment on
the second mortgage is often deferred and carries a very low interest rate (or no interest rate at all). Part
of the debt may be forgiven incrementally for each year the buyer remains in the home.
comparables
An abbreviation for "comparable properties"; used for comparative purposes in the appraisal process.
Comparables are properties like the property under consideration; they have reasonably the same size,
location and amenities and have recently been sold. Comparables help the appraiser determine the
approximate fair market value of the subject property.
compound interest
Interest paid on the original principal balance and on the accrued and unpaid interest.
condemnation
The determination that a building is not fit for use or is dangerous and must be destroyed; the taking of
private property for a public purpose through an exercise of the right of eminent domain.
condominium
A real estate project in which each unit owner has title to a unit in a building, an undivided interest in the
common areas of the project and sometimes the exclusive use of certain limited common areas.
condominium conversion
Changing the ownership of an existing building (usually a rental project) to the condominium form of
ownership.
condominium hotel
A condominium project that has rental or registration desks, short-term occupancy, food and telephone
services and daily cleaning services and that is operated as a commercial hotel even though the units are
individually owned.
construction loan
A short-term, interim loan for financing the cost of construction. The lender makes payments to the
builder at periodic intervals as the work progresses.
contingency
A condition that must be met before a contract is legally binding. For example, home purchasers often
include a contingency that specifies that the contract is not binding until the purchaser obtains a
satisfactory home inspection report from a qualified home inspector.
contract
An oral or written agreement to do or not to do a certain thing.
conventional mortgage
A mortgage that is not insured or guaranteed by the federal government. Contrast with government
mortgage.
convertibility clause
A provision in some adjustable-rate mortgages (ARMs) that allows the borrower to change the ARM to a
fixed-rate mortgage at specified timeframes after loan origination.
convertible ARM
An adjustable-rate mortgage (ARM) that can be converted to a fixed-rate mortgage under specified
conditions.
cooperative (co-op)
A type of multiple ownership in which the residents of a multiunit housing complex own shares in the
cooperative corporation that owns the property, giving each resident the right to occupy a specific
apartment or unit.
cooperative corporation
A business trust entity that holds title to a cooperative project and grants occupancy rights to particular
apartments or units to shareholders through proprietary leases or similar arrangements.
cooperative mortgages
Mortgages related to a cooperative project. This usually refers to the multifamily mortgage covering the
entire project but occasionally describes the share loans on the individual units.
cooperative project
A residential or mixed-use building wherein a corporation or trust holds title to the property and sells
shares of stock representing the value of a single apartment unit to individuals who, in turn, receive a
proprietary lease as evidence of title.
corporate relocation
Arrangements under which an employer moves an employee to another area as part of the employer's
normal course of business or under which it transfers a substantial part or all of its operations and
employees to another area because it is relocating its headquarters or expanding its office capacity.
cost of funds index (COFI)
An index that is used to determine interest rate changes for certain adjustable-rate mortgage (ARM)
plans. It represents the weighted-average cost of savings, borrowings and advances of the 11th District
members of the Federal Home Loan Bank of San Francisco. See adjustable-rate mortgage (ARM).
covenant
A clause in a mortgage that obligates or restricts the borrower and that, if violated, can result in
foreclosure.
credit
An agreement in which a borrower receives something of value in exchange for a promise to repay the
lender at a later date.
credit history
A record of an individual's open and fully repaid debts. A credit history helps a lender to determine
whether a potential borrower has a history of repaying debts in a timely manner.
credit life insurance
A type of insurance often bought by mortgagors because it will pay off the mortgage debt if the mortgagor
dies while the policy is in force.
creditor
A person to whom money is owed.
credit report
A report of an individual's credit history prepared by a credit bureau and used by a lender in determining
a loan applicant's creditworthiness.
credit reporting agency (or bureau)
An organization that prepares reports that are used by lenders to determine a potential borrower's credit
history. The agency obtains data for these reports from a credit repository as well as from other sources.
credit repository
An organization that gathers, records, updates and stores financial and public records information about
the payment records of individuals who are being considered for credit.
common area assessments
Levies against individual unit owners in a condominium or planned unit development (PUD) project for
additional capital to defray homeowners' association costs and expenses and to repair, replace, maintain,
improve or operate the common areas of the project.
common areas
Those portions of a building, land and amenities owned (or managed) by a planned unit development
(PUD) or condominium project's homeowners' association (or a cooperative project's cooperative
corporation) that are used by all of the unit owners, who share in the common expenses of their operation
and maintenance. Common areas include swimming pools, tennis courts and other recreational facilities,
as well as common corridors of buildings, parking areas, means of ingress and egress, etc.
common law
An unwritten body of law based on general custom in England and used to an extent in the United States.
Community Land Trust Mortgage Option
An alternative financing option that enables low- and moderate-income home buyers to purchase housing
that has been improved by a nonprofit Community Land Trust and to lease the land on which the property
stands.
community property
In some western and southwestern states, a form of ownership under which property acquired during a
marriage is presumed to be owned jointly unless acquired as separate property of either spouse.
Community Seconds®
An alternative financing option for low- and moderate-income households under which an investor
purchases a first mortgage that has a subsidized second mortgage behind it. The second mortgage may
be issued by a state, county or local housing agency, foundation, or nonprofit organization. Payment on
the second mortgage is often deferred and carries a very low interest rate (or no interest rate at all). Part
of the debt may be forgiven incrementally for each year the buyer remains in the home.
comparables
An abbreviation for "comparable properties"; used for comparative purposes in the appraisal process.
Comparables are properties like the property under consideration; they have reasonably the same size,
location and amenities and have recently been sold. Comparables help the appraiser determine the
approximate fair market value of the subject property.
compound interest
Interest paid on the original principal balance and on the accrued and unpaid interest.
condemnation
The determination that a building is not fit for use or is dangerous and must be destroyed; the taking of
private property for a public purpose through an exercise of the right of eminent domain.
condominium
A real estate project in which each unit owner has title to a unit in a building, an undivided interest in the
common areas of the project and sometimes the exclusive use of certain limited common areas.
condominium conversion
Changing the ownership of an existing building (usually a rental project) to the condominium form of
ownership.
condominium hotel
A condominium project that has rental or registration desks, short-term occupancy, food and telephone
services and daily cleaning services and that is operated as a commercial hotel even though the units are
individually owned.
construction loan
A short-term, interim loan for financing the cost of construction. The lender makes payments to the
builder at periodic intervals as the work progresses.
contingency
A condition that must be met before a contract is legally binding. For example, home purchasers often
include a contingency that specifies that the contract is not binding until the purchaser obtains a
satisfactory home inspection report from a qualified home inspector.
contract
An oral or written agreement to do or not to do a certain thing.
conventional mortgage
A mortgage that is not insured or guaranteed by the federal government. Contrast with government
mortgage.
convertibility clause
A provision in some adjustable-rate mortgages (ARMs) that allows the borrower to change the ARM to a
fixed-rate mortgage at specified timeframes after loan origination.
convertible ARM
An adjustable-rate mortgage (ARM) that can be converted to a fixed-rate mortgage under specified
conditions.
cooperative (co-op)
A type of multiple ownership in which the residents of a multiunit housing complex own shares in the
cooperative corporation that owns the property, giving each resident the right to occupy a specific
apartment or unit.
cooperative corporation
A business trust entity that holds title to a cooperative project and grants occupancy rights to particular
apartments or units to shareholders through proprietary leases or similar arrangements.
cooperative mortgages
Mortgages related to a cooperative project. This usually refers to the multifamily mortgage covering the
entire project but occasionally describes the share loans on the individual units.
cooperative project
A residential or mixed-use building wherein a corporation or trust holds title to the property and sells
shares of stock representing the value of a single apartment unit to individuals who, in turn, receive a
proprietary lease as evidence of title.
corporate relocation
Arrangements under which an employer moves an employee to another area as part of the employer's
normal course of business or under which it transfers a substantial part or all of its operations and
employees to another area because it is relocating its headquarters or expanding its office capacity.
cost of funds index (COFI)
An index that is used to determine interest rate changes for certain adjustable-rate mortgage (ARM)
plans. It represents the weighted-average cost of savings, borrowings and advances of the 11th District
members of the Federal Home Loan Bank of San Francisco. See adjustable-rate mortgage (ARM).
covenant
A clause in a mortgage that obligates or restricts the borrower and that, if violated, can result in
foreclosure.
credit
An agreement in which a borrower receives something of value in exchange for a promise to repay the
lender at a later date.
credit history
A record of an individual's open and fully repaid debts. A credit history helps a lender to determine
whether a potential borrower has a history of repaying debts in a timely manner.
credit life insurance
A type of insurance often bought by mortgagors because it will pay off the mortgage debt if the mortgagor
dies while the policy is in force.
creditor
A person to whom money is owed.
credit report
A report of an individual's credit history prepared by a credit bureau and used by a lender in determining
a loan applicant's creditworthiness.
credit reporting agency (or bureau)
An organization that prepares reports that are used by lenders to determine a potential borrower's credit
history. The agency obtains data for these reports from a credit repository as well as from other sources.
credit repository
An organization that gathers, records, updates and stores financial and public records information about
the payment records of individuals who are being considered for credit.
| Real Estate and Loan Glossary of Terms |
 | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  |
| Capital Real Estate and Loans Nannette Truong Kazan, Broker-Real Estate Specialist |
| Cell: 714 478-4940 |
| Fax: 949 266-8911 |
| Office: 949 679-3400 |
| Company Info |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
| Real Estate |